Packaged Food

Send Email

Soup in Ukraine

Mar 2015|Pages: 59

Price: US$990

About this Report

Executive Summary

TRENDS

Dehydrated soup and instant soup remained the only two active soup areas, with instant soup accounting for 82% share of retail value sales in 2014 and 69% of total volume sales. The latter will continue to decrease and only increasing unit prices can balance negative trends. As the category suffered from weakening demand for years, manufacturers were passive in terms of innovation since it was not worth investing in the category under such unfavourable circumstances. Although convenience products are becoming increasingly popular among Ukrainian consumers, many people reject buying these products as they are considered to be unhealthy.

COMPETITIVE LANDSCAPE

Nestlé-Ukraine TOV led soup, recording retail value share of 41% in 2014, while Euro Foods GB Ukraina TOV ranked second with value share of 16%. Both companies are well-known by Ukrainians due to their strong promotions and high-quality products.

PROSPECTS

Soup is expected to record marginally decreasing volume sales over the forecast period. Only instant soup is expected to record positive volume growth over the forecast period, while canned/preserved and dehydrated soup will continue to suffer from further declines. Due to worsening economic conditions and declining incomes, consumers are expected to decrease their spending on convenience products. In addition, manufacturers will have to face critics stating that ‘powder soups’ are unhealthy. Therefore, growth of soup will remain limited, and will reach marginally negative average constant value sales over the forecast period.